Current Data

Methodology

The Remodeling Market Index (RMI) is based on a quarterly survey of NAHB remodeler members that provides insight on current market conditions as well as future indicators for the remodeling market.

The RMI survey asks remodelers to rate a variety of aspects of the remodeling market as ‘higher’ or ‘lower’ than three months earlier. Each question in the RMI survey is measured on a scale of 0 to 100, where an index number of 50 indicates equal numbers of remodelers report activity ‘higher’ and ‘lower’ than the previous quarter.

When applicable, the survey asks remodelers to rate rental and owner-occupied housing separately. According to the Census Bureau, between 1995 and 1999, 69 percent of remodeling activity was done on owner-occupied housing, and 31 percent on rental properties (this data series has been discontinued). These shares are used to weight the index for each question.

The Current Market Index is a weighted composite of remodelers’ rating of market demand for three components of the remodeling market at the present time compared to 3 months earlier—major additions and alterations (jobs valued at $25,000 or more), minor additions and alterations (jobs valued at less than $25,000), and maintenance and repair. According to the Census Bureau, 30 percent of remodeling activity was major additions and alterations, 40 percent minor additions and alterations, and 30 percent maintenance and repair. These shares are assigned to each component when weighting the Current Market Index.

The Future Market Indicators Index is an average of four components—volume of calls for bids, the amount of work committed for the next three months, the backlog of remodeling jobs, and the number of proposal appointments at this time compared to three months earlier.

The Overall Remodeling Market Index is calculated by averaging the Current Marketing Index and the Future Market Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as higher than the previous quarter. Results are seasonally adjusted.